130 A. 405 | Pa. | 1925
Is a corporation producing distilled water a manufacturing corporation and therefore exempt from the payment of capital stock taxes under the terms of the Act of July 22, 1913, P. L. 903? The court below decided in favor of the exemption. The Commonwealth appeals.
We think no good purpose would be served by a review of all the cases in which the determination has been that certain corporations were or were not manufacturing corporations and liable or not liable for the payment of a capital stock tax. As was said by Mr. Justice SADLER, then in the common pleas and specially presiding in Dauphin County, in Com. v. J. Frank Boyer Plumbing Heating Co., 23 Dauphin Co. R. 296, 297: "The words of the statute [manufacture] are indeed so familiar in use and meaning that they are confused by attempts at definition. Their first sense as used is fabrication or composition, — a new article is produced of which the imported material constitutes an ingredient or part. When we go further than this in explanation we are involved in refinements and in impracticable niceties."
Distilled water is the result of subjecting ordinary water to heat, converting it into steam and recondensing it into water. The distilled water produced by the defendant is subjected to certain additional refinements in cleansing it of impurities, but in its main essentials *182
the process is the boiling of it to the point where it becomes steam and cooling it back to water. We fail to see how this process can any more be said to be manufacturing than the roasting of coffee could be held so to be, and in Com. v. Lowry-Rodgers Co.,
Admittedly, defendant is subject to the capital stock tax unless it is engaged in manufacturing. If it is to be exempted from the payment of the tax, it must clearly bring itself within the exemption provided in the act: Academy of Fine Arts v. Phila. Co.,
The judgment of the court below is reversed and it is directed that judgment shall be entered in favor of the Commonwealth for the amount due.